Malaysia: Transfer pricing FAQs

Malaysia: Transfer pricing FAQs

The KPMG member firm in Malaysia has prepared a report of “frequently asked questions” (FAQs) for Malaysian taxpayers that are engaged in related-party transactions or controlled transactions.


The FAQs are intended to provide a general overview of the transfer pricing changes proposed in the Finance Bill 2020 following the tabling of the 2021 Budget in November 2020. The introduction of new provisions in the Income Tax Act 1967 relating to transfer pricing highlights the importance of transfer pricing compliance.

The FAQs include information about:

  • A failure to furnish contemporaneous and timely transfer pricing documentation
  • The authority to disregard a structure in a controlled transaction
  • Surcharge imposed with regard to a transfer pricing adjustment

With the proposed introduction of new provisions, non-compliance with the transfer pricing requirements can be subject to severe penalties. Therefore, it is prudent for taxpayers to maintain contemporaneous and comprehensive documentation (including the relevant source records) to defend their position during a tax audit.

Read a December 2020 report [PDF 164 KB] prepared by the KPMG member firm in Malaysia 

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